You Have Prepared a Trend Series for Company XYZ for Three

question 16

Multiple Choice

You have prepared a trend series for Company XYZ for three years, 2004-2006 inclusive, using 2004 as the base year. Below are selected data.
$$\begin{array} { | l | c | c | c | } \hline & 2004 & 2005 & 2006 \\\hline \text { Sales } & 100 & 120 & 135 \\\hline \text { Net Income } & 100 & 118 & 128 \\\hline \text { Total Assets } & 100 & 119 & 130 \\\hline\end{array}$$
-Which of the following statements is incorrect?

• A) Net Income in 2006 increased by 28% compared to 2004.
• B) XYZ's net income to sales (return on sales) increased in 2006 compared to 2004.
• C) XYZ's net income to sales (return on sales) decreased in 2006 compared to 2004.
• D) Assets have increased over time.

---

Definitions:

Fixation

In psychology, a persistent focus of the id’s libido on an earlier stage of development, preventing progress through Freud's psychosexual stages.

Psychosexual Stage

a concept in Freudian psychology that describes a series of stages of childhood development in which psychic energy is focused in different erogenous zones.

Oral

Pertaining to the mouth, including aspects related to speech, eating, and the initial stages of digestion.

Anxiety

An emotion characterized by feelings of tension, worried thoughts, and physical changes like increased blood pressure, stemming from anticipation of a future concern or threat.